The firm - which owns the Hams Hall distribution complex near Coleshill - forecast growth of at least three per cent in underlying operating profit from its UK ports and transport activities in the six months to June 30.

It also said underlying operating profit from property development would be at least £5 million, compared to £400,000 in the first six months of last year.

"Pre-tax profit for the half year to 30 June 2005 is expected to be ahead of current market expectations, led by the phasing of property sales," the company said in a statement ahead of its first- half results due on September 7.

Associated British Ports handles about a quarter of Britain's seaborne trade.

Meanwhile, smaller British ports operator Forth Ports tipped firsthalf results to be in line with its expectations, but was upbeat on the outlook for ports in the second half.

"The outlook for the second half of 2005 in ports is significantly stronger than the first half," the firm said in a statement, pointing to contributions from a contract and improved performance for its TCS container terminal joint venture.

Forth flagged an increase in container throughput in the second half in Scotland as well as a full six-month contribution from a new coal contract.